Financial Literacy for High School Students is an interactive and educational online course that enables students to create sound financial choices throughout their lifetime.
Modern financial education objectives come to life through engaging digital scenarios and relatable characters! Students speed up their progress by tackling problems, reflecting on their decisions, and playing games that give them real-life practice.
1040
A tax form filled out by an individual and filed with the IRS that determines the amount of income tax owed in a single year.
1040EZ
A tax form, similar to the 1040 filled out by an individual and filed with the IRS. The form is used to determine the amount of income tax owed to the IRS in a single year.
401(k)
A retirement account offered through an employer, where an employee can contribute money from his or her paycheck before or after taxes.
403(b)
A retirement account similar to a 401(k) plan, but offered by non-profit organizations, like universities or charitable organizations.
529 college saving plan
A savings plan offering tax benefits that can be used for any qualified educational expenses.
Asset
Property owned by an individual or organization that has some value. Can refer to physical items (like a house or car) or to intangible items (like a stock or bond).
Associate’s degree
A degree granted after two years of study, often by a community or junior college.
ATM Card
A payment type similar to a debit card that allows you to make electronic purchases but requires that you enter a PIN (Personal Identification Number) for any transaction.
Annual Percentage Rate (APR)
Another name for the interest rate charged on the balance of a credit card.
Auto insurance
A type of insurance that protects a policyholder in the case of a car accident. Most states require it by law.
Bachelor’s degree
A degree awarded by a college or university for completing undergraduate studies.
Balance
The total amount of money in a banking account at any given time.
Balance Transfer
A transfer of your existing credit card balance to another credit card.
Bonds
When you buy this, you loan an amount of money to the organization issuing the it at a certain interest rate for a certain period of time. You are paid interest from this loan at regular periods, and then, when the it matures, you get back your initial investment plus any additional interest.
Budget
A plan of how you will spend the money that you make or receive.
Cash Advance
A loan of cash you obtain with a credit card.
Certificate of deposit
A type of savings vehicle in which you put your money away for a certain amount of time, called a term, to allow your principal to earn interest.
Claim
The request you make to your insurance company for payment of the benefits allowed by your coverage.
Compound Interest
Interest that’s generated not only from the money you put into an account, but also from the interest you make on that money.
Compounding frequency
The number of compounding periods in one year.
Consilidation Loans
These combine several student loans into one bigger loan from a single lender, which is then used to pay off the balances on the other loans.
Consumer Fraud
When a product or service is illegally used to deceive you into sending money or signing up with a phony service.
Co-Pay
A fixed fee that an individual pays for specific medical services, like a visit to the doctor’s office.
Coverage
Your coverage refers to the range of protection you are eligible to receive from an insurance plan.
Credit Bureaus
Companies that collect credit information about individuals. They then calculate a credit score for each individual based on this information.
Credit Cards
A payment type that does not automatically draw money from your account. Instead, it provides a short-term loan that you can use to make everyday purchases.
Credit History
A record of a person’s borrowing and repayment activity.
Credit Limit
The amount of money that you are able to charge to a credit card. If you exceed this limit, your purchase may not go through and you could be penalized.
Credit Report
A record that details a person’s credit history.
Credit Score
A numerical rating of your credit-worthiness (how likely you are to pay off your debts).
Debit Card
A payment type that allows you to make electronic purchases that withdrawals the cost of the purchase directly from your checking account.
Deductible
The amount you are required to pay toward each claim you make before your insurance kicks in. This cost is in addition to the regular price of your premium.
Deduction
In tax terms, an expense incurred by a taxpayer that is subtracted from gross income when the taxpayer computes his or her income taxes.
Default
Occurs when a borrower is unable or unwilling to repay a debt or required payment.
Deposit
When money is added into a bank account (also known as a ‘credit’).
Direct deposit
Allows you to have money come into your account one time or automatically, often through a paycheck.
Disability insurance
A type of insurance that helps cover lost income when an illness or injury prevents you from working.
Down Payment
An upfront payment made when an item is bought on credit.
Expenses
Anything you spend money on, from a pack of gum to your monthly cell phone bill.
FAFSA
This is the main form students use to apply for federal education grants and loans.
FDIC
Insures deposits at banks that have purchased the coverage.
Federal Income Tax
The amount you are taxed on the money you earn while working.
Federal Reserve
The central banking system of the United States. It is composed of a Board of Governors, the Federal Open Market Committee (FOMC), and 12 regional banks.
Federal Student Loans
Loans that are offered directly to students by the government.
Federal Work-Study Program
A part-time employment that can be awarded as part of a federal financial aid package.
Fee Schedule
A detail of all the fees that may be charged on a bank account.
Fixed Rate
This refers to an interest rate that remains the same, over the life of the loan.
Foreclosure
The process by which a bank or other entity takes possession of a mortgaged property when mortgage payments are not being made.
Grace Period
In reference to credit cards, this is the amount of time you have to pay back a balance before it starts accumulating interest.
Grant
Money given to students to help pay for their education and do not have to be repaid.
Health insurance
A type of insurance that covers the cost of medical expenses.
Homeowners insurance
A type of insurance that covers your home as well as your possessions inside it in case of damage or loss.
IRS
The government agency in charge of collecting taxes from US citizens.
Identity Theft
A form of fraud where a person or a group uses another person’s personal information in order to steal their money or gain access to other benefits.
Income
Any form of money, property, or services that you receive.
Initial Fraud Alert
An alert put on your credit file to help prevent additional identity theft. The alert stays on your file for 90 days, at which point you can choose to renew it if necessary.
Interest Rate
The percentage you make or pay on a principal (like 1% or 5%).
Interest
The fee someone pays to be able to borrow money.
Investment
When you spend money on something to gain profitable returns.
Landlord
The owner of a property.
Lease
A rental agreement. It lays out the terms for the property you’d like to rent: how much you’re going to pay and how long (and how often) you’re going to pay it.
Life Insurance
A type of insurance that ensures that another person (called a beneficiary) will be financially protected if you pass away.
Liquidity
Refers to how easily and quickly your assets, like your money, can be moved.
Loan Officer
Someone who advises, evaluates, and signs off on loans to individuals and business.
Maintenance Costs
Costs associated with ownership of a house, a car, or a similar purchase that are the owner’s responsibility.
Medicare
A tax that pays for health care for people aged 65 and over.
Minimum Monthly Payment
In regards to credit cards, this refers to the least amount of money you are obligated to pay back on a monthly basis to avoid fees and penalties associated with not paying the minimum amount.
Mortgage
A type of loan used to finance the purchase of real estate.
Mutual Funds
A collection of investment vehicles that you can buy as a single package, rather than purchasing individual stocks, bonds, and other investments yourself.
Online Transfer
The movement of funds from one account or individual to another through a bank’s website or mobile application.
Payday Lenders
These businesses offer small cash loans, usually in the range of $100 to $500, with payment due in full at the borrower’s next paycheck.
Personal Check
A paper payment type. You can write and sign this to pay for purchases at places that accept them.
Phishing scam
A scam where someone tries to deceive you into providing personal information by impersonating someone, like a bank representative.
PIN
Stands for “Personal Identification Number”. Often used to complete a transaction made with a debit card.
Policy
When relating to insurance, the document that outlines the terms and conditions for your insurance coverage.
Portfolio
When relating to investments, this refers to the range of investments held by an individual or organization.
Premium
The amount you pay to have insurance for a specific amount of time.
Prepaid card
A card that allows you to put a specific amount of money onto them.
Principal
The sum of money you put into an account or the amount of money (minus interest) you owe on a debt.
Private Student Loans
These Loans are financed by private companies rather than the government.
Property Tax
Taxes an owner pays on the value of any owned property, including land, buildings, or houses.
Rate of Return
The ratio of the money you gain on an investment in relation to the amount of money that was invested.
Registration fees
When referring to a vehicle, a compulsory charge for registering the vehicle with a government authority, usually a state or county.
Renters Insurance
A type of insurance that can protect you from damage or loss of your items in a rental property.
Rent-to-own Agreement
An agreement where your rental payment goes towards owning the property later on.
Required Balance
A certain amount of money you must have in some bank accounts at any given time to avoid being penalized.
Return
Refers to how much money an investor could potentially earn from an investment. Usually expressed as a percentage.
Risk
In investing terms, the chance you take that an investment may or may not result in a return.
Roth IRA
An individual retirement account designed for individual savers. The money you contribute is taxed, which means the money comes out tax-free when you retire.
Sales Tax
When you buy something this is added to the total before you pay.
Savings Accounts
A type of savings vehicle in which you earn interest on the principal, usually without minimum balance requirements but lower interest rates.
Savings Plans
A way to save money for the long-term, which for most people means retirement.
Scholarship
Money given to students to help pay for their education and do not have to be repaid. Often based on academics or sports and can be lost if the requirements are not met.
Security Deposit
An amount of money that the property owner holds onto during the lease that can later be used to pay for any damages to the property caused by the renter. Usually equal to one month’s rent.
Shareholders
In investing terms, another name for a Stockholder.
Shares
In investing terms, another name for a Stock.
Social Security
A tax that pays for the retirement benefits for people who are currently retired and for the future retired population.
Social Security Number
A 9-digit number issued to U.S. citizens, permanent residents, and temporary working residents.
State Income Tax
Most states charge this on all its residents based on the money you earn while working.
Stock
Shares of ownership in a company.
Stock Exchange
A place where stocks are bought and sold.
Stockbroker
An individual who has a license to buy and sell stocks and other investments on one or more stock exchanges.
Stockholder
Someone who owns stock in a company.
Tax Bracket
Levels that determine, based on how much income an individual makes, what percentage of that income will be owed in taxes.
Tax Deduction
An expense incurred by a taxpayer that is subtracted from gross income when the taxpayer computes his or her income taxes.
Tenant
The renter of a property.
Unsubsidized Student Loan
This is a type of federal student loan on which the government does not pay the interest that accrues while a student is in school.
Utilities
Services – like electricity, water or gas – provided to the public.
Variable Rate
This refers to an interest rate that is based on an interest rate index, which means the rate can change over the life of the loan.
W-2
A tax form employers send to each of their employees listing how much money that individual made during the last year and how much has already been paid in taxes.
W-4
A tax form an employee fills out that tells the IRS how much money to take out of each of their paychecks.
Withdrawal
When money is taken out of a bank account (also known as a ‘debit’).
Withholding
An amount taken out of you paycheck to pay for taxes.
Sources
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